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Rabu, 27 April 2016

Demystifying Disability Tax Credit Canada

By Peter Hill


There are over two million people who are disabled in Canada and this is what necessitated the country to look into ways of making their lives to be more comfortable just like for the normal people. One of the ways of achieving this feat was through the introduction of the disability tax credit Canada. Whenever you mention it you will get an audience since most people do not understand it.

It was provided for the sole purpose of helping physically challenged people to be able to claim some money when their taxable income becomes inadequate. It is also possible for this claim to be shared with a family member who is involved in taking care of the disabled person. It serves as a relief to them as the government understands the kind of strain these important members of the society place on them.

The funds are not a must to be used on only issues touching on the welfare of the disabled people alone. They were introduced with the aim of helping such people to share the same financial freedom that is enjoyed by people who are able-bodied. However, in order for these people to enjoy these benefits they ought to satisfy the eligibility criteria that were put in place by the CRA to make sure that only the affected persons enjoy it.

These requirements require that the applicant has to demonstrate and prove beyond any doubt that they suffer an impairment that impedes them from doing normal duties on their own easily. It is important for their applications to be consistent with the categories that the Canadian Revenue Agency recognizes. They touch on some major eight points that are considered by the CRA in the evaluations of applications.

The agency puts into consideration the needs of a disabled person to undergo future therapies in order to sustain their lives and the other conditions that affect them. They also ensure that the kind of disability affecting such persons has been there for the past one year. This condition should also be expected to continue existing for a long period of time to come.

All the applications made by disabled Canadians are subjected to a vigorous check in order to check whether they satisfy the evaluation guidelines created by the CRA. They are used in the evaluation of all applications notwithstanding the underlying disabilities. These applications should also be made on a prescribed T2201 form that is supposed to be filled and signed by a physician to be used as a source of all your personal details.

Currently there have been calls for reforms in the way these claims are made as most people complain that they are not worth enough. The complaints range from the complex application processes and the eligibility requirements being too restrictive. Other complains attack the CRA claiming that it turns down the applications and that some doctors also deem them not eligible at all.

CRA has already stated that a small fraction of the eligible disabled-Canadians usually apply for the existing tax credit. Things seem destined to change as CRA seems to be responding to complaints as it is looking at overhauling the process to include some new regulations. This will ensure that more disabled Canadians get access to money.




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